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Ellington Credit Completes Conversion to Closed-end Fund

1. EARN completed conversion to a Delaware-domiciled closed-end fund. 2. Fund plans to sell Agency MBS and acquire CLOs.

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FAQ

Why Bullish?

EARN's shift to a RIC can enhance tax efficiency and attract investors. Historically, funds restructuring for tax benefits see positive price reactions.

How important is it?

The conversion impacts EARN's strategy and regulatory framework, influencing investor sentiment and stock performance.

Why Long Term?

The impact from becoming a RIC and shifting investment strategy typically unfolds over time as investors adjust to new structures.

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OLD GREENWICH, Conn.--(BUSINESS WIRE)--Ellington Credit Company (NYSE: EARN) (the “Fund”) announced today the completion of its conversion to a Delaware-domiciled closed-end fund registered under the Investment Company Act of 1940 (the “Conversion”). In conjunction with the Conversion, the Fund intends to sell its remaining Agency MBS pools, acquire additional corporate collateralized loan obligations (“CLOs”), and operate as a Regulated Investment Company (“RIC”) under U.S. federal tax law. Th.

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